Australia has a pressing need for substantial infrastructure investment to support the nation’s long-term growth. Key areas include metropolitan road and rail transport networks, long distance inter-city travel, social infrastructure such as hospitals and schools, and national fibre consumer telecommunications.
In the post-GFC environment, financing constraints mean that traditional public private partnership models cannot be used for projects significantly larger than $2bn to $3bn. Indeed, for these projects the choice of a conventional PPP may constrain competition, increase pricing and place additional pressure on government balance sheets.
The White Paper "Building Australia", which I helped to write, explored new delivery models and financing structures that can unlock much larger projects. These ideas have been widely field tested with stakeholders from around the world, and we are continuing to refine them in the light of these discussions. We welcome your own thoughts and commentary as well.